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Journal : Law and Economics

The Realization of Factors Detrimental to State Finances in Corporate Activ-ities Ainuddin , Ainuddin
Law and Economics Vol. 19 No. 1 (2025): February: Law and Economics
Publisher : Institute for Law and Economics Studies

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35335/laweco.v19i1.137

Abstract

The realization of state financial loss in corruption offenses involves demonstrating that a corrupt act has caused a tangible and specific detriment to state finances or the national economy. This study examines the clarity of legal material regarding state financial loss in corporate actions, focusing on the corruption case verdict No. 70/Pid.Sus-TPK/2023/PN.Plg. Using a normative legal methodology—incorporating legislative, conceptual, and case law studies, the study examines the legal frameworks surrounding corruption and state budget cuts, revealing differing interpretations of financial loss in corporate corruption cases. It emphasizes the need for clearer instructions on proving state financial loss and emphasizes the importance of a strong legal base in corruption cases. Findings reveal that the Public Prosecutor failed to convincingly establish the legal basis for proving state financial loss. The indictment claimed that PT. BA’s acquisition of PT. SBS through its subsidiary PT. BMI resulted in a state financial loss of IDR 162,466,152,401. However, inconsistencies emerged in defining "state financial loss," assessing the loss amount, and qualifying it within the acquisition process. The Panel of Judges meticulously examined the charges under Article 2 of the Corruption Eradication Law (UU Tipikor). Upon reviewing the elements of the offense, the Judges concluded that the Prosecutor failed to substantiate the allegations. Consequently, the Panel issued a vrijspraak (acquittal) for Defendant "TI." This verdict fulfills juridical, philosophical, and sociological dimensions, rendering it legally sound and well-reasoned.
Between Administrative and Constitutional Jurisdiction: Investigating Dual Pathways to Justice in Indonesia Ainuddin , Ainuddin
Law and Economics Vol. 19 No. 3 (2025): October: Law and Economics
Publisher : Institute for Law and Economics Studies

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35335/laweco.v19i3.225

Abstract

This study explores the intersection of administrative and constitutional adjudication in Indonesia, focusing on the overlapping jurisdictions of the State Administrative Court (PTUN) and the Constitutional Court (MK). Although these institutions were established to complement one another within a system of checks and balances, their concurrent mandates often generate legal uncertainty and procedural inefficiencies. Employing normative legal research and a conceptual framework, the analysis examines primary sources (the 1945 Constitution, PTUN Act, Constitutional Court Act, Government Administration Act), secondary literature, and illustrative case law. Through statutory, conceptual, and case‐based approaches, the study identifies points of convergence and divergence in the courts’ competencies, as well as the practical implications for citizens seeking redress. The findings reveal that PTUN’s focus on concrete administrative acts and the MK’s review of abstract legal norms can lead to contradictory outcomes: a PTUN judgment may vindicate a claimant without invalidating the underlying statute, while an MK annulment of a norm does not automatically reverse prior administrative decisions. This dual‐track system imposes duplicative litigation burdens, prolongs resolution timelines, increases costs, and ultimately erodes public confidence in the rule of law. To resolve the overlapping jurisdictions between PTUN and MK, this study recommends clearer statutory delineation of competencies, coordinated case-management protocols, and the possible establishment of a unified forum for disputes with both administrative and constitutional dimensions. Strengthening institutional synergy through capacity building and enhancing transparency in jurisdictional guidance are also essential to ensure consistency, reduce litigation burdens, and restore public trust in the rule of law